On Friday, Indian equities experienced a sharp intraday sell-off but managed to close above their lows for the day

metro india news  I hyderabad

The stock market investors are a relieved lot and expect the market would look up on Monday. Sujit Malwani, a stock broker based out of Hyderabad said that investors have been jittery for the last two days and the news of the ceasefire has brought cheer.

The benchmark stock indices Sensex had Nifty had settled lower in the past two sessions amid concerns the brewing hostility between the two countries would turn into a full-fledged war.  The market dislikes uncertainty and investors have been closely watching the proceedings. In the last two months, there has been apprehensions due to US tariffs and after the Pakistan attack on Pahalgam, markets further took a nose dive.

After the India-Pakistan tensions escalated post Operation Sindoor by India as a retaliation to the Pahalgam attack, Indian equities witnessed high volatility with a market capitalization (m-cap) loss to the tune of Rs 7.1 lakh crore over the last two trading sessions.

On Friday, Indian equities experienced a sharp intraday sell-off but managed to close above their lows for the day. The India VIX—an indicator of market volatility and fear—rose by 2.97 percent to 21.63, reaching its highest level in a month. Both indices reflected cautious investor sentiment, with many preferring to stay on the sidelines amidst fears of further escalation in the conflict.

PSU banks outperformed, along with consumer durables, whereas real estate and financial services lagged behind. Given the recent escalation of tensions, investor sentiment is likely to shift, with many seeking to avoid risky positions. Historically, de-escalation in geopolitical tensions has often triggered relief rallies in the Indian stock market.